Research problem:
How have Adidas used
the instrument Branding,
and which roll did it play
in the competition
between Adidas and Nike?
Author: Karolina Tichá
Brand Identity Prism - Nike
Physical product
Sports and
fitness
Personality
Like Jordan, Woods…
Relation
Sponsorship,
Ethics
Reflection
Aggressive,
Provocative,
In-your-face
Culture
American
Just do It!
Self image
Cool
”Athlete”
Brand Identity Prism - Adidas
Physical product
Sports and
fitness
Relation
Quality and
Heritage
Reflection
True sportsmanship
Strong work ethic
A good team player
Personality
Traditional, Conservative, Collective
Culture
European
Traditional
Self-Image
Relates more to
competing than to
winning
Brand Equity
Brand
Awareness
•Endorsement
focus strategy
•National
advertising
Nike:
•Development of
NikeTown stores
Adidas:
•branded
grassroot
sponsorship
Perceived
Quality
Brand
Associations
Nike:
•Sports
•Life style
•Attitude
Adidas:
•Heritage
•Tradition
•Quality
Brand
Loyalty
Nike:
•Sales 1986:
$ 1 billion
•Sales 2002:
$ 9,9 billion
Adidas:
Sales 1992:
$ 1.7 billion
Sales 1998:
$ 4.8 billion
Three most important tools which have
enhanced brand awareness on Nike
• Endorsement focus strategy
–
–
–
–
–
Participation of famous athletes with the company
Michael Jordan, Tiger Woods, Andre Agassi
They are heroes…
Succesful strategy during 80s and 90s
Costs – e.g. Jordan´s average salary about 20 million USD per year
• Nike Town
– 13 Nike Towns in the world
– High costs, cannot expect opening of a NT in the Czech Rep. soon
• National advertising
– Innovative way, big extent of advertising, uses all communication mix
– TV, internet, campaigns like „Just do it“
– Costs – approximate costs of campaign like „Just do it“ about 100 million
USD
Efficiency of strategies used by Nike
• Endorsement focus strategy
– High efficiency in 80s, 90s
– Jordan – possible to measure directly by amount of sales of Air
Jordan products
– Nike golf sales increased to 250 million USD from 100 million
USD in 2000
– Supports brand awareness, has enhanced the image of the company
• Natinal advertising
– Hard to express efficiency directly
– Has helped to understand Nike mission, wearing Nike is more a
live philosophy than just a fashion
• Nike Town
– Has brought to the branding and marketing world something
absolutly new and original, created strong brand identification
Expected orientation of Nike strategies
• New trend in the society – individuality  the
endorsement focus strategy will probably loose its power,
people do not want to be like Jordan anymore…
• We can expect orientation to campaigns emphasizing
individuality
• Possible transfer of investments from endorsement focus
strategy to national advertising
How have Adidas used the instrument Branding,
and which roll did it play in the competition
between Adidas and Nike?
•media advertising,
•new subbrands,
•sponsorship
•branded grassroot sponsorship
Adidas used the same theoretical systems as
Nike to develop their brand building.
Conclusion
• In this project were used two theoretical models – Kapferer
Prism model for branding identity and model for brand
equity
• Models were applied on companies Nike and Adidas and
showed and explained main aspects of brand building of
Nike and Adidas
• Revealed strong and weak sides of these companies in
brand building
• This theoretical approach can be used in comparison of
other companies due to its theoretical background
Thank you for
Your attention!